Record home sales in the Dallas/Fort Worth area for 2013

According to the latest report from Texas A&M University’s Real Estate Center, North Texas existing home sales rose 4 percent in November.  Year to date 2013 home sale numbers for the Dallas Fort Worth-North Texas area are up significantly with single family home sales of 82,234 an 18% increase over the same 11 month period in 2012. The average price for the area was $226,005 up 10% over 2012.

In November, 5,960 homes were sold in the 29-county North Texas region with a median price of $170,000, 10 percent higher than last year, according to the report.

On average, homes sold in November were on the market for 59 days, which is a 20 percent drop from November of 2012.

The strongest home sales in Tarrant County last month were in central west Arlington, where the median price also rose 74 percent from a year ago. The housing inventory (number tells you how many months it would take for all the current homes for sale to be sold) is still extremely low in area. In the Arlington Mansfield area inventory levels average 2.4 months which is down about 35% from 2012. A normal real estate market is considered to be between 5 and 7 months inventory. The Arlington Mansfield area average home price is $155,075 up 9% and the average Days on Market are 50, down 27% from the same 11 month period of 2012.

For more information on the real estate market in your area contact the Sullivan and Sullivan real estate team.

 

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Reverse Mortgages to Purchase a Home in Texas

In November’s general election, Texas citizens decided to change the state constitution to allow for all Federal Housing Administration reverse mortgage products under state rule in Proposition 5.

This legislation will allow the state constitution to be amended to allow for qualified applicants to use a reverse mortgage to purchase a home. Previously, homestead laws within Texas have prevented the loan until now. The Texas constitution has been amended several times since 1999 to allow other reverse mortgage products.

The amendment will also include reverse mortgage safeguards, including a requirement that detailed disclosures be made at least 12 days before the closing of a new reverse mortgage loan, which provides prospective borrowers with the information and time necessary to make the loan decision.

Texas was the second largest market in the country for reverse mortgages. However, prior to the passage of Prop 5, it was the only state that didn't offer the "reverse mortgage for a home purchase." This form of reverse mortgage allows a person to purchase a new primary residence and obtain a reverse mortgage in a single transaction. Prop 5 included the terms of a "reverse mortgage for purchase" in the constitution, so seniors could use this method to obtain a new home. It also required lenders of reverse mortgages to expand the required counseling to borrowers, ensuring that seniors know what specific actions can lead to foreclosure.

Because of homestead laws, a reverse mortgage for purchase in Texas, has as many or more consumer protections that any other state. It is the most regulated mortgage loan in Texas. Some people have expressed concerns about reverse mortgages, however a check with the Texas Department of Savings and Mortgage revealed there have been no enforcement actions from lending involving reverse mortgages in the last 6 years.

A reverse mortgage is a credit agreement under which a creditor provides money to a borrower in exchange for a lien on the borrower's home. A reverse mortgage for purchase of a residence is called a Home Equity Conversion Mortgage (HECM). A HECM is a FHA insured, non-recourse loan. There are no mortgage payments. The borrower is not required to repay the money or interest on the money until the borrower dies, sells the home or permanently moves out of the home. Reverse mortgages are available to people ages 62 and up. Qualifying may be easier than a traditional mortgage, generally there are no credit score requirements. Typically the down payment for a reverse mortgage to purchase a home runs between 40% to 60%.

If you have question about a Home Equity Conversion Mortgage (Reverse Mortgage) please contact the Sullivan & Sullivan team by clicking here.

For answers to frequently asked questions on Reverse Mortgages go to the HUD website here.  

Technorati Tags: Reverse Mortgage,Seniors,Texas,Proposition 5,HECM,Home Equity Conversion Mortgage

Arlington Housing Finance Corporation Offers Help for Homebuyers

Are you interested in becoming a homeowner in Arlington Texas.   Help is available to qualified homebuyers through the  Arlington Housing Finance Corporation’s Mortgage Credit Certificate program, also known as MCC.

The Arlington MCC Program is a federal income tax credit designed to assist those who are trying to become homeowners. With an MCC, the qualified homebuyer is eligible to write off up to $2,000 of the annual interest paid on the mortgage as a special tax credit. The credit can be claimed annually as long as the home is your principal residence.

Since it launched in April 2011, the AHFC has already helped a number of families become first time homebuyers in Arlington using the Mortgage Credit Certificate program  The first series of the MCC program was so successful the AHFC issued a second series. There are still funds available for assistance

“The MCC program has exceeded our expectations,” said AHFC Director David Zappasodi. “It is a wonderful resource to enable qualified homebuyers to purchase a home of their choice in Arlington. The MCC can also be used in combination with other homebuyer assistance resources.”

For more information and details about the Mortgage Credit Certificate program, visit: www.arlingtontx.gov/housing/homeownership_ahfcmp.html

Click Here to see a fact sheet about the Mortgage Credit Certificate program from FSC Housing.

To apply for MCC contact FirstSouthwest Housing at 214-953-4176 or fschousing@firstsw.com

Technorati Tags: Arlington TX Homes for Sale,Mortgage Tax Credit,first time homebuyer,Arlington Housing Authority